{"id":3681,"date":"2022-06-09T08:22:42","date_gmt":"2022-06-09T08:22:42","guid":{"rendered":"https:\/\/ccbill.com\/kb\/?p=3681"},"modified":"2023-03-07T12:17:39","modified_gmt":"2023-03-07T12:17:39","slug":"statement-descriptor","status":"publish","type":"post","link":"https:\/\/ccbill.com\/kb\/statement-descriptor","title":{"rendered":"What Are Statement Descriptors?"},"content":{"rendered":"

Introduction<\/p>\n\n\n

According to CB Insights<\/em>, an average person in the US makes around seventy<\/a> payments per month. This does not sound like a lot until a two-page bank statement comes listing all those transactions.<\/p>\n\n\n\n

In this jumble of numbers, codes, and balances, how does a person recognize which transaction refers to which purchase? This is where statement descriptors come into play.<\/p>\n\n\n\n

Statement descriptors allow merchants to provide context behind the transactions listed on a bank statement. Find out how statement descriptors work, why merchants should use them, and what the best implementation practices are.<\/p>\n\n\n\n

\"What<\/figure>\n\n\n\n

What is a Statement Descriptor?<\/h2>\n\n\n\n

A statement descriptor (also known as a billing descriptor or merchant descriptor) refers to the text and numbers used to describe a transaction on a bank statement. They serve the purpose of reminding the customer where they spent their money.<\/p>\n\n\n\n

Besides informing customers about the origin of a transaction, merchants use statement descriptors as a friendly fraud prevention tool and for representment<\/a> during a chargeback dispute<\/a>. Statement descriptors help reduce chargeback rates<\/a> by providing as many details about a purchase as possible within a short format.<\/p>\n\n\n\n

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Note: <\/strong>Check out our articles to learn more about different types of ecommerce fraud<\/a>, such as friendly fraud<\/a> and payment fraud<\/a>.<\/p>\n\n\n\n

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Types of Statement Descriptors<\/h2>\n\n\n\n

There are four types of statement descriptors:<\/p>\n\n\n\n

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  1. Soft (pending) descriptor<\/li>\n\n\n\n
  2. Hard (final) descriptor<\/li>\n\n\n\n
  3. Static descriptor<\/li>\n\n\n\n
  4. Dynamic descriptor<\/li>\n<\/ol>\n\n\n\n

    Soft (Pending) Descriptor<\/h3>\n\n\n\n

    A soft descriptor (also called a pending descriptor) is used as a placeholder for a hard descriptor, and it appears on a bank statement when a transaction is authorized but not settled.<\/p>\n\n\n\n

    Hard (Final) Descriptor<\/h3>\n\n\n\n

    A hard descriptor (also called a final descriptor) replaces the soft descriptor once the transaction is settled.<\/p>\n\n\n\n

    Static Descriptor<\/h3>\n\n\n\n

    A static descriptor is the same on all customers\u2019 bank statements, regardless of the details of individual purchases. The term can refer to the entire statement descriptor or just the first part (the prefix).<\/p>\n\n\n\n

    Static descriptors work best for businesses that sell a sole product or service or a limited range of products or services. Additional reasons a business owner chooses to implement a static statement descriptor are:<\/p>\n\n\n\n